Full Text of HB5510 095th General Assembly
HB5510 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5510
Introduced , by Rep. Arthur L. Turner SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/4-108.6 new |
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40 ILCS 5/6-227 new |
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30 ILCS 805/8.32 new |
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Amends the Downstate Firefighter and Chicago Firefighter Articles of the Illinois Pension Code. Allows a member of a pension fund established under the Downstate Firefighter Article to forfeit service credit for the purpose of establishing a corresponding amount of service credit under the Chicago Firefighter Article of the Code. Amends the State Mandates Act to require implementation without reimbursement.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB5510 |
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LRB095 18208 AMC 44292 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by adding | 5 |
| Sections 4-108.6 and 6-227 as follows: | 6 |
| (40 ILCS 5/4-108.6 new) | 7 |
| Sec. 4-108.6. Transfer to Article 6. Any member of a fund | 8 |
| established under this Article may forfeit service credit for | 9 |
| the purpose of establishing a corresponding amount of service | 10 |
| credit under Article 6 of this Code. Upon notification by the | 11 |
| board established under Article 6 of this Code, a fund | 12 |
| established under this Article shall provide information | 13 |
| relating to the firefighter electing forfeit of service credit, | 14 |
| and shall transfer the corresponding funds to the board | 15 |
| established under Article 6 in a timely manner. If the total | 16 |
| amount of funds on deposit is greater than the total amount | 17 |
| required by the board established under Article 6, the fund | 18 |
| shall retain the difference. | 19 |
| (40 ILCS 5/6-227 new) | 20 |
| Sec. 6-227. Transfer from Article 4. | 21 |
| (a) A firefighter in active service under this Article may | 22 |
| transfer all or some of his or her accumulated creditable |
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HB5510 |
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LRB095 18208 AMC 44292 b |
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| service established as a member of a fund or funds established | 2 |
| under Article 4 of this Code, to a fund established under this | 3 |
| Article by making an irrevocable election to the board | 4 |
| forfeiting all service credit previously established under | 5 |
| Article 4 and providing the payments required by this Section. | 6 |
| (b) Upon receipt of the election required by subsection | 7 |
| (a), the board shall contact the fund or funds established | 8 |
| under Article 4 in which the firefighter has established | 9 |
| creditable service. The fund shall verify the total amount that | 10 |
| (i) employee contributions paid into the fund or funds | 11 |
| established under Article 4 of this Code, including, but not | 12 |
| limited to, amounts paid for regular and optional service | 13 |
| credit, (ii) any employer contributions corresponding to | 14 |
| regular and optional service, and (iii) any actual investment | 15 |
| returns that were generated by employee and employer | 16 |
| contributions relating to the firefighters creditable service, | 17 |
| less any reasonable fees and administrative expense | 18 |
| experienced by the fund in relation to those contributions. The | 19 |
| Board must then request a transfer of all funds verified under | 20 |
| this Section, and shall immediately deposit those funds in a | 21 |
| manner consistent with its investment policy. | 22 |
| (c) After verifying the total amount of service credit | 23 |
| available for transfer, the fund shall establish the total | 24 |
| amount of employer contributions, employee contributions, and | 25 |
| interest that would have been required if the firefighter had | 26 |
| been employed by the City of Chicago as a firefighter during |
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HB5510 |
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LRB095 18208 AMC 44292 b |
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| the same time that the firefighter was establishing credit | 2 |
| under Article 4 of this Code. In establishing these | 3 |
| contributions, the fund shall use the actual salary earned by | 4 |
| the firefighter when service was established. | 5 |
| (d) When the board has verified the total amount of funds | 6 |
| available for deposit under subsection (b), it shall provide a | 7 |
| written statement, which includes (i) the amount verified and | 8 |
| available for transfer under subsection (b), (ii) the total | 9 |
| amount of creditable service available for transfer, (iii) the | 10 |
| total cost established under subsection (c) and the difference, | 11 |
| if any of the amount in subsection (b) less the amount in | 12 |
| subsection (c), and (iv) the amount of creditable service where | 13 |
| contributions required under subsection (c) would be equal to | 14 |
| the amount available under subsection (b). | 15 |
| (e) Within 30 days after receiving the written statement, | 16 |
| the firefighter may establish an amount of service credit equal | 17 |
| to the amount of forfeited service credit previously | 18 |
| established under Article 4 by paying, if necessary, the | 19 |
| difference between subsection (b) and the amount in subsection | 20 |
| (c). Alternatively, the firefighter may reduce the number of | 21 |
| years of creditable service established under this Article by | 22 |
| receiving the amount of creditable service where contributions | 23 |
| required under subsection (c) would be equal to the amount | 24 |
| available under subsection (b).
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| Section 90. The State Mandates Act is amended by adding |
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LRB095 18208 AMC 44292 b |
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| Section 8.32 as follows: | 2 |
| (30 ILCS 805/8.32 new) | 3 |
| Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8 | 4 |
| of this Act, no reimbursement by the State is required for the | 5 |
| implementation of any mandate created by this amendatory Act of | 6 |
| the 95th General Assembly.
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